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Gold sees good gains as USDX sharply down, crude oil up

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Welcome to Kitco News' 2023 Outlook Series. Uncertainty continues to dominate financial markets as central bank monetary policies push the global economy into a recession to cool down inflation. Stay tuned to Kitco News to learn from the experts on how to navigate turbulent financial markets in 2023.

(Kitco News) - Gold prices are up and hit a seven-month high Monday. Silver prices are near steady. A big sell off in the U.S. dollar index and higher crude oil prices are bullish outside market elements for the precious metals markets to start the trading week. Bullish charts continue to inspire the technically oriented traders to the long sides of gold and silver. February gold was last up $10.20 at $1,880.10 and March silver was down $0.017 at $23.96.

Trader and investor risk appetite is keener to start the trading week, following a "Goldilocks" U.S. jobs report last Friday that hints the U.S. economy this year just may come in for a so-called soft landing, instead of going into recession, amid an aggressive monetary-policy-tightening program from the Federal Reserve. Also, spirits are upbeat as China continues to open up its borders and its economy, including opening travel between Hong Kong and mainland China. The above suggests better prospects for the global economy in 2023, which would translate into better demand for metals.


Gold price climbs closer to $1,900 as China says it bought 30 tonnes in December

Global stock markets were mostly higher overnight. U.S. stock indexes are firmly higher at midday. Nymex crude oil futures prices are trading around $75.25 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching around 3.516%percent. 

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures bulls have the solid overall near-term technical advantage. A two-month-old uptrend is in place on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at the $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today's high of $1,886.40 and then at $1,900.00. First support is seen at today's low of $1,869.30 and then at $1,850.00. Wyckoff's Market Rating: 8.0

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures were nearer the session low at midday. The silver bulls have the firm overall near-term technical advantage. Prices are still in a four-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at today's high of $24.285 and then at the January high of $24.775. Next support is seen at $23.55 and then at the January low of $23.26. Wyckoff's Market Rating: 7.0.

March N.Y. copper closed up 1,270 points at 403.90 cents today. Prices closed near the session high and hit a 6.5-month high today. The copper bulls have gained the overall near-term technical advantage. A three-month-old uptrend on the daily bar chart has been restarted. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 425.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 370.85 cents. First resistance is seen at 405.00 cents and then at 410.00 cents. First support is seen at 394.70 cents and then at 390.00 cents. Wyckoff's Market Rating: 6.5.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.